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NEW QUESTION: 1
You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. When it comes to Managing portfolio risks, a risk owner, along with the portfolio manager, should select the strategy or mix of strategies most likely to be effective. Which of the following is not a risk strategy?
A. Strategies for both threats and opportunities
B. Fallback Plan
C. Scenario Analysis
D. Response Strategy Selection
Answer: B
Explanation:
Explanation
Strategies may include: response strategy selection, strategies for both threats and opportunities, and scenario analysis. The risk owner may develop a fallback plan for execution if the selected strategy is not sufficiently effective. So the fallback plan is a result of a failed strategy

NEW QUESTION: 2
As a result of tests of controls, an auditor assesses control risk too high. This incorrect assessment most
likely occurred because:
A. Control risk based on the auditor's sample is less than the true operating effectiveness of the client's
control activity.
B. Control risk based on the auditor's sample is greater than the true operating effectiveness of the client's
control activity.
C. The auditor believes that the control activity will reduce the extent of substantive testing when, in fact, it
will not.
D. The auditor believes that the control activity relates to the client's assertions when, in fact, it does not.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. The risk of assessing control risk too high is the risk that the assessed level of
control risk based on the sample is greater than the true risk based on the actual operating effectiveness
of the control.
Choice "A" is incorrect. The risk of assessing control risk too low is the risk that the assessed level of
control risk based on the sample is less than the true risk based on the actual operating effectiveness of
the control.
Choice "B" is incorrect. Assessing control risk too high relates to an incorrect evaluation of risk by the
auditor, not to whether the control activity relates to the client's assertions.
Choice "C" is incorrect. If the auditor believes that a control activity will reduce the extent of substantive
testing when, in fact, it will not, this implies that the control risk based on the auditor's sample was less
than the true risk based on the actual operating effectiveness of the control. This would be an example of
assessing control risk too low, not too high.

NEW QUESTION: 3
Scott Fitzgerald was a prominent American writer of the twentieth century. This passage comes from one
of his short stories and tells the story of a young John Unger leaving home for boarding school.
John T. Unger came from a family that had been well known in Hades a small town on the Mississippi
River for several generations. John's father had held the amateur golf championship through many a
heated contest; Mrs. Unger was known "from hot-box to hot-bed," as the local phrase went, for her
political addresses; and young John T. Unger, who had just turned sixteen, had danced all the latest
dances from New York before he put on long trousers.
And now, for a certain time, he was to be away from home That respect for a New England education
which is the bane of all provincial places, which drains them yearly of their most promising young men,
had seized upon his parents.
Nothing would suit them but that he should go to St. Midas's School near Boston--Hades was too small to
hold their darling and gifted son. Now in Hades--as you know if you ever have been there the names of
the more fashionable preparatory schools and colleges mean very little. The inhabitants have been so
long out of the world that, though they make a show of keeping up-to-date in dress and manners and
literature, they depend to a great extent on hearsay, and a function that in Hades would be considered
elaborate would doubtless be hailed by a Chicago beef-princess as "perhaps a little tacky." John T. Unger
was on the eve of departure. Mrs. Unger, with maternal fatuity, packed his trunks full of linen suits and
electric fans, and Mr. Unger presented his son with an asbestos pocket-book stuffed with money.
"Remember, you are always welcome here," he said. "You can be sure, boy, that we'll keep the home
fires burning." "I know," answered John huskily.
"Don't forget who you are and where you come from," continued his father proudly, "and you can do
nothing to harm you. You are an Unger--from Hades."
So the old man and the young shook hands, and John walked away with tears streaming from his eyes.
Ten minutes later he had passed outside the city limits and he stopped to glance back for the last time.
Over the gates the old-fashioned Victorian motto seemed strangely attractive to him. His father had tried
time and time again to have it changed to something with a little more push and verve about it, such as
"Hades--Your Opportunity," or else a plain "Welcome" sign set over a hearty handshake pricked out in
electric lights. The old motto was a little depressing, Mr. Unger had thought--but now.
So John took his look and then set his face resolutely toward his destination. And, as he turned away, the
lights of Hades against the sky seemed full of a warm and passionate beauty.
The names Hades, St. Midas, and Unger suggest that the passage can be considered a(n)
A. euphemism.
B. allegory.
C. aphorism.
D. epic poem.
E. satire.
Answer: B
Explanation:
Explanation/Reference:
Hades is hell in Greco-Roman mythology. Midas represents wealth. Unger resonates with the hunger the
family feels for the wealth and prestige of the North. In other words, the names suggest that the story uses
the experiences of this one family to represent a larger situation. Itis an allegory, choice (E).